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Why are some mortgage brokers declaring doom for 2026?

Journalist: Simoney Kyriakou, FT Adviser

ended 02. January 2026

On social media, many mortgage brokers have predicted: 

falls in house prices (surely a good thing?)

Falls in the number of transactions (due to the continued pressures of cost of living)

Increases in the number of people falling into arrears on their mortgage

Increases in people ditching their insurance policies to make ends meet.

Is this actually happening, in your own clients' experience? Or is this just a prediction about what might happen, given the UK's economic fortunes? Could this become a self-fulfilling prophecy as people read these things on social media and then act on them? 

FT Adviser would love to hear your thoughts on this debate. Are we really all doomed? 

5 responses from the Newspage community

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Ranald MitchellVerified
Director at bad credit mortgage specialists Charwin Mortgages
Talk of doom for 2026 is more noise than evidence. The market is more price sensitive and more segmented, but also more competitive. As funding costs ease, lenders will keep sharpening pricing, and the bigger shift will be criteria: smarter affordability, better recognition of real world income, and a more pragmatic approach to historic credit blips. That does not just help prime borrowers, it brings a meaningful slice of good customers back into the market, and that is where the opportunity is.
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Chris SchutrupsVerified
Founder at The Mortgage Hut / William James Wealth Management
The last part of 2025 was one of the most challenging times in my 15-year career. As people waited to see the budget's impact, purchase transactions slowed across our mortgage and estate agency businesses.

However, December was exceptionally busy, even leading up to the 24th. This continued interest suggests significant pent-up demand. What I’ve learned since starting my business after the 2008 recession is that there is always a need for moves. People will always need to buy and sell, and 2026 looks promising with a predicted 2% growth in house prices.

In this market, those with a positive mindset and a focus on the best customer experience will win. With more brokers and fewer customers, being customer-centric is vital. 2025 was about putting foundations down; 2026 will be the year of opportunity.
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Justin MoyVerified
Managing Director at EHF Mortgages
There is plenty that might happen in 2026; it's a combination of a poorly-managed and badly-timed budget that's left everyone with no momentum as we hit the end of the year. Whilst mortgage rates will be their best for the last 3 years or so, there are plenty of borrowers still on extremely low rates that will need support, and buyers will be ultra-cautious given the relative cost of purchasing. Further squeezes on income will only lower the mood of the public until the economy eventually improves. Until then, it feels like 2026 will be a year of stability- we have enough schemes and opportunities for borrowers, just need that confidence to come back to the market.
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Riz MalikVerified
Independent Financial Adviser at R3 Wealth
There are over 1.8 million renewals in 2026. Regardless of what happens in the purchase market there are enough clients that need advice. We cannot control the market but we can control our attitude and outlook.
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Elliott CulleyVerified
Director at Switch Mortgage Finance
With the base rate predicted to fall over the course of 2026 it's likely mortgage rates will also reduce. This could lead to first time buyers returning to the mortgage market after many put their plans on hold in 2025 when stamp duty changed. It will remain a buyers market and houses prices are likely to reduce in regions of the UK. Some will be put off by rises in living costs, but if mortgage rates do reduce it may offset these costs and bring some back to the market.